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US internet ad revenues hit new high

US online ad revenues reached a new record of $4.2bn in Q3, according to figures from the Interactive Advertising Bureau (IAB).

The report, conducted by PwC, showed a 33% increase in internet ad revenues from the same period in 2005, and a rise of 2% from Q2’s figure of almost $4.1bn.

IAB general manager Sheryl Draizen said more advertisers have realised the effectiveness of online ads:

“The consistent growth of online advertising is a clear indication that marketers continue to embrace the true power of interactive advertising.

“Marketers are experiencing how this medium enhances their ability to target and engage the audience that matters to their brand and then measure its effectiveness in ways no other medium provides.”

In a speech in London yesterday, Yahoo! CEO Terry Semel said growth predictions were underestimating the market by failing to take account of the potential of video, social media and mobiles advertising.

“[Video] will be ever-present throughout the internet, and it will find its proper way to advertise.

“So whether it’s mobile or whether it’s video or whether it’s more and more community, these factors have not gone into those numbers, so we think the actual growth potential of advertising online is really being understated.”

Despite falling broadband prices, customers’ satisfaction with their broadband service providers has fallen by 9% over the last year.

In a YouGov survey of more than 11,000 broadband customers, conducted for uSwitch, Orange and TalkTalk were both rated bottom for the services they offered, even though both launched ‘free broadband’ packages this year.

Companies are pouring billions of dollars a year into social media and influencer marketing campaigns, many of which target consumers on Facebook-owned Instagram, in an effort to parlay social engagement into sales.